The economy of Argentina is backed by the availability of rich natural resources and export-oriented agricultural sector. The industrial sector in Argentina is also diversified which helps the economy to have steady growth.

Gross Domestic Product (GDP)

The GDP of Argentina increased from ARS 1,032.76 billion in 2008 to ARS 1,465.86 billion in 2010 (till Q3).

The GDP growth rate witnessed a decline in 2009 and in 2010 (till Q3) it increased sharply from 0.9% to 8.6%.

(Source: Central Bank of Argentina: page: 2)

Trade Balance

In 2010, exports of Argentina amounted to USD 68.50 billion while imports were valued at USD 56.44 billion. In 2010, the balance of trade was a surplus of USD 12.05 billion, a decrease of about 28.61% over 2009. Exports and imports in 2009 amounted to USD 55.67 billion and USD 38.78 billion respectively.

 

(Source: Ministry of Finance)

Top destinations of exports

Argentina’s largest export partner is Brazil accounting for USD 14,318.77 million in 2010, followed by China, Chile and the United States with exports of USD 5,794.49 million, USD 4,412.38 million and USD 3,483.33 million respectively.

 

(Source: Ministry of Finance)

Gross Domestic Product per capita

Till Q3 2010, GDP per capita stood at USD 8,617. In 2009 GDP per capita amounted to USD 7,643, a decrease of about 7.06% over 2008.

(Source: Central Bank of Argentina: Page. 2)

Gross National Income

The country recorded Gross National Income (GNI) of USD 304.07 billion for 2009, an increase of about 6.5% over 2008. Per Capita GNI was USD 7,550 for the year 2009.

 (Source: World Bank, World Bank)

Inflation Rate

The inflation rate in Argentina increased from 7.2% in 2008 to 10.9% in 2010.

 

(Source: Central Bank of Argentina: page: 2)

Income Tax Rate

Income tax on individual incomes in Argentina is taxed progressively at 9% to 35%.

 

Taxable Income (ARS)	Tax Rate (%)
0 to 10,000	9
10,001 to 20,000	14
20,001 to 30,000	19
30,001 to 60,000	23
60,001 to 90,000	27
90,001 to 120,000	31
120,001 and above	35

(Source: taxrates.cc)

Corporate Tax Rate

Standard corporate income tax rate and value added tax rate in Argentina are set at 35% and 21% respectively.

(Source: doingbusiness.org)

FDI Inflow

In 2009, Gross FDI inflows amounted to USD 4 billion, a sharp decline of 58.76% over 2008 FDI investments of USD 9.7 billion.

(Source: Economist Intelligence Unit)

Central Bank Assets

 

Assets of Central Bank of Argentina (ARS million)
Particulars	2009	2008
International Reserves	182,114.13	160,202.88
Government Securities	50,607.79	42,563.81
Temporary advances to Argentine Government	36,580	26,580
Loans to Argentine financial system	1,159.34	2,596.37
Contributions to international Agencies	8,049.65	7,132.26
Rights deriving from financial instruments	25.36	3.47
Right deriving from REPO transactions	18,534.47	22,729.68
Other assets	980.87	2,294.94
Total Assets	298,051.62	264,103.40

 (Source: Central Bank of Argentina)

Consumer Price Index (CPI)

The consumer price index in Argentina is on a steady rise. The index figures for Aug 2010 crossed the 120 mark to reach 122.86. This indicates that the increase in the prices of consumer goods has increased since the base year i.e. 2008.

Base: April 2008 = 100

(Source: Ministry of Finance)

Wholesale Price Index (WPI)

Wholesale Price Index in Argentina is on a steady rise and crossed mark of 400 as of Jan. 2010.

Base: 1993 = 100

(Source: Ministry of Finance)

Interest Rates

Interest rates on saving and time deposits have decreased from 2009 to Jan 2011.

(Source: Central Bank of Argentina)

Government Expenditure

The Government expenditures in Argentina increased consistently from 2007 to 2009. In 2009, the expenditures amounted to USD 267,345 million, an increase of about 30.74% over 2008. Till Q2 2010, consolidated government revenues amounted to USD 153,456 million.

(Source: Ministry of Finance: page: 45)

Official Exchange Rate

Period	ARS / USD
2010	3.9124
2009	3.7293
2008	3.1623
2007	3.1154
2006	3.0740
2005	2.9233

(Source: Central Bank of Argentina)

Government finances

Sovereign debt dynamics

Fiscal Balance

The fiscal balance of the country increased for 2007 and 2008 reaching USD 14,655 million and witnessed a deficit of USD 7,131 million in 2009. However, the fiscal balance is on a recovering path and reached USD 196 million in 2010 (till Q2).

(Source: Ministry of Finance: page: 45)

Total Revenue

The total revenue increased steadily from USD 164,074 million in 2007 to USD 260,214 million in 2009. Till Q2 2010, the Government of Argentina recorded total revenue of USD 153,652 million. The overall increase in revenue is attributed to growing VAT revenues and increase in receipts in individual income tax and excise duties.

(Source: Ministry of Finance: page: 45)

Tax Revenue

Till Q2 2010, tax revenues in Argentina were amounted to USD 191,681 million and in 2009 it was valued at USD 304,930 million. Total tax receipts of Argentina include taxes on property, goods, services, imports and income of individuals and capital gains.

(Source: Ministry of Finance: page: 45)

Current Account Balance

The current account shows exports and imports of goods and services, income and expenses as well as current transfers in a specified period of time. Till Q3 2010, Argentina registered a current account surplus of USD 3,698 million and 2009 recorded the highest current account balance of USD 11,030 million since 2005.

(Source: Ministry of Finance)

Balance of Payments

 

Balance of Payments (USD million)
	2010 (Till Q3)	2009
Exports of Goods and Services	60,176	66,567
Imports of Goods and Services	48,845	49,165
Income	-7,454	-9,010
Current transfers	-180	2,639
Capital and financial account	670	-9,350
Reserves Assets	3,080	1,346
Net Errors and Omissions	-1,289	-333

(Source: Ministry of Finance)

In Q3 2010, the total labour force in Argentina is recorded at 24.89 million, an increase of about 0.20% over Q2 2010. The total labour force at the end of 2009 was 24.72 million.

(Source: Statistics of Argentina)

The employment level at the end of Q3 2010 was recorded at 14.38 million, about 57.8% of the total labour force. In 2009, the employed population was 14.07 million.

(Source: Statistics of Argentina)

Unemployment rate as a percentage of total labour force stood at 7.3% in Q4 2010, a drop from Q4 2009 (8.4%).

(Source: Statistics of Argentina)

Minimum Wage

In Q3 2010, total income per employed person in Argentina was ARS 2,344, an increase of 15.35% over Q2 2010.

 

(Source: Statistics of Argentina)

Argentina is an independent and democratic country. Argentina has a Republic form of Government with a framework of constitutional democracy, wherein the absolute power is vested in people. The federal government supports the Roman Catholic Apostolic religion.

The legislative power of Argentina is with a Congress composed of two houses:

• Deputies of Nation
• Senators for provinces and city of Buenos Aires

In the house of deputies, number of representatives would be one for every 33,000 inhabitants or fraction not under 16,500 inhabitants. The Senate is composed of three senators from each state and three from the city of Buenos Aires.

(Source: Government of Argentina)

Regulatory Environment

The Government of Argentina is based on constitutional republic framework, wherein state is headed by arepresentative of the people. In Argentina Parliament “Congress” is established consisting of representatives of people. The executive power belongs to the “President of Argentine Nation”.

(Source: Government of Argentina)

The country’s economic freedom score is 51.7, making its economy the 138^th freest in the 2011 Index of Economic Freedom. Its score has increased by 0.5 points over 2010. Argentina is ranked 24^th out of 29 countries in the South and Central America/Caribbean region, and its overall score is below the regional and world averages.

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. It ranks countries according to the perception of corruption in the public sector. Argentina is ranked 105^th out of 178 countries covered on World’s Corruption Perceptions Index 2010, which indicates that the levels of corruption in public departments is relatively high.

CPI ranking of Argentina improved from 106^th in 2009 to 105^th in 2010 with a score of 2.9 out of 10. This shows that the perceived levels of corruption have decreased in the country.

(Source: Transparency.org)

Freedom of Information

The World Press Freedom Index 2010 ranks Argentina at 55^th position, indicating the media in the country is less restricted.

(Source: rsf.org)

Major newspapers in the country are:

• Clarin
• La Nacion
• Cronica
• l Cronista
• La Prensa (Argentina’s oldest newspaper)
• Buenos Aires Herald

Telefe (Canal 11), Canal 13 (El Trece), Canal 9, America (Canal 2), Todo Noticias, Canal 7 are some of the broadcasters in Argentina.

(Source: BBC)

Judicial System

Justice in Argentina is administered by the National Judicial Power composed of the Supreme Court and lower courts both at federal and regional levels.

Components of the Judicial system in Argentina are:

• Supreme Court
• Trial Jury
• Judicial Council
• National Courts

The Supreme Court is the highest authority in the system consisting of 9 judges and is the final legal instance so that the decision of lower courts can be challenged and reopened. Trial Jury is meant for judging the judges of lower courts and includes nine.

(Source: Government of Argentina)

In 2010, total population of Argentina is recorded at 40.52 million, an increase of 0.96% over 2009. Females accounted for 51% of the total population in 2010.

(Source: Statistics of Argentina: page: 26)

During 2004-2010, the population of the country witnessed a steady growth due to higher birth rates.

(Source: Statistics of Argentina: page: 26)

In 2010, the majority of the population i.e. about 60.57% were recorded in the age group of 15-59 years and about 14.37% population belonged to the age group of 60+ years. The age group between 0-14 years accounted for 25.06% of the population.

(Source: Statistics of Argentina: page: 27 to 29)

Birth and Death Rate

From 2005 to 2010, the average annual birth rate for five year group is 17.5 per 1000 persons and the mortality rate is 7.8 per 1000 persons.

(Source: Statistics of Argentina: page: 30)

Average Life expectancy

From 2005 to 2010, the average life expectancy at birth for five year group is recorded at 71.56 years for males and 79.06 for females.

(Source: Statistics of Argentina: page: 32)

Infant Mortality Rate

The country registered infant mortality rate of 13.4 deaths per 1,000 live births from 2005 to 2010, for five year group.

(Source: Statistics of Argentina: page: 32)

Human Development Index (HDI)

The country is ranked 46^th on the HDI 2010, based on factors like life expectancy at birth, mean and expected years of schooling, gross national per capita income, etc.

(Source: HDR UNDP)

In 2010, the literacy rate in Argentina is recorded at 97.6%.

(Source: guardian.co.uk)

Educational Resources

Argentine education includes:

• Early childhood education
• Primary and secondary education
• Higher education

Early childhood education focuses on teaching children aged between 45 days to 5 years. Primary and secondary education lasts for 12 years and with 7 years of primary and 5 secondary or 6 years of primary and 6 secondary education.

Primary education starts from 6 years of age and consists of 7 or 5 years based on jurisdiction. Secondary education lasts for 5 or 6 years and is divided into 2 cycles:

• Basic cycle which is common to all students
• Cycle-oriented, focused on different areas of knowledge and skills

Higher education includes Universities and Research Institutes and Higher education institutes of national jurisdiction.

(Source: Ministry of Education)

Healthcare System

The healthcare system in Argentina consists of:

• Public healthcare
• Private healthcare
• Social security

The public healthcare system is funded as part of Government expenditure. Private healthcare belongs to corporate and individuals operating it. And social security is funded through donations and contributions.

(Source: healthgov.net)

Mass Public Transit

People in Argentina mainly travel by means of- buses, railways, motor vehicles, ships/ferries, aircraft and underground metro.

(Source: argentina.gov.ar)

Ports

There are a total of 55 ports in Argentina. Major ports are:

Port of Rio Grande, Port of San Sebastian, Cullen Oil Terminal, Punta Loyola, Port of Rio Gallegos, Port of Punta Quilla, Port of San Julian, Port of Puerto Deseado, Port of Caletra paula, Port of Camarones, Port of Rawson, Puerto Madryn, Punta Colorada, Port of San Antonio Oeste.

(Source: worldportsource)

Airports

Major airports in Argentina are:

(Source: aircraft-charter-world)

Telecommunication Networks 

Internet Usage in the country is growing at a steady pace. In 2010, 64.4% of the population in Argentina had internet access, compared to 48.9% in the year 2009.

(Source: internetworldstats)